Amazon has reached new delivery terms with the US Postal Service (USPS) that would allow the agency to keep 80% of its current Amazon parcel volumes, Reuters reported.
The updated agreement represents a much smaller decline than earlier expectations.
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According to the news agency, Amazon had previously suggested a reduction of two-thirds or more in the amount of package business handled by USPS.
USPS has warned it could face a cash shortfall as soon as October, and any major loss of Amazon-related volumes was seen as a significant risk.
The threat was compounded by the prospect of Amazon further expanding its own logistics operations or diverting more deliveries to other carriers.
People cited in the report said the e-commerce company is expected to continue building out its delivery capabilities, but not at a level that would match USPS’s nationwide coverage down to individual addresses.
USPS runs on an annual budget of roughly $80bn, with Amazon contributing around $6bn in yearly revenue, the report added.
US Postmaster General David Steiner told Reuters in December that the postal service handles 1.7 billion Amazon packages each year.
The agency also reported that Amazon had previously expressed concerns about USPS plans to auction access to its last-mile delivery network.
In April 2025, Amazon said it planned to invest more than $4bn to expand rural delivery in the US by the end of 2026.
In separate developments, USPS said last month it is seeking approval for a temporary 8% increase in priority mail and package delivery prices from 26 April, citing rising transportation and fuel costs.
Steiner said that increasing the price of a first-class stamp to 95 cents from 78 cents would help reduce losses.
USPS has recorded net losses totalling $118bn since 2007, as first-class mail volumes, its highest-margin business, have dropped to their lowest point since the late 1960s.
